Monthly Archives: December 2015

5The following are some tips that can help individuals to repair credit on their own:

Request a 3-Bureau Credit Report

The first tip is to request a full credit report to check exactly where you stand. Everyone is entitled to one free credit report a year from the 3-major credit bureaus, which are Equifax, TransUnion and Experian. The credit report does not have the credit score, but there are companies that can help you calculate it. The credit score ranges between 300 and 840, and a credit score of 740 is considered fine. A credit score of less than 600 is not so good, and may attract higher interest rates if you ever try to get a loan. Knowing where you stand helps you create a plan to recover your financial footing.

Check for Errors

Analyze the credit report to check for any errors. If you find that there is any discrepancy, such as credit cards you do not own or major purchases you did not make, record the error and dispute it. To do this, you need to highlight the error, gather all supporting documents and send this information with a written letter to the credit bureau that reported the false information.

Create a Budget

You need to create a budget to take charge of your financial situation. Budgets can help you live within your means and not spend more than you earn. Budgets can also help you pay your debts and your bills on time. Paying bills on time can significantly improve your credit score. If you have to, setup payment reminders to remind you to clear your bills on time. It is also important for you to reduce the debt on your credit cards, but you should not cancel these cards.

Resist the Temptation

Finally, individuals should resist the temptation to take new credit cards, as these can negatively impact their credit score. Applying for too many credit cards within a short period of time can significantly impact a person's credit rating. Even in future, after clearing your debts, only apply for new credit cards when you really need to.

sA BOUNCED CHEQUE

A bounced cheque is one of those reports that will never show up on the traditional credit report. This however, does not make its potential implications on your credit score any insignificant. While your bank may not list your bounced cheque case with the credit bureau, you might still find the record listed due to a bounced cheque that was taken up by a collection agency, civil or criminal charges against you owing to it or writing it to a company which reports to the credit bureau.

The bank may also list you on their ChexSystem which means your ability to open a checking account with another bank is not only limited for some years duration but also your credit limit is reduced.

FREQUENT APPLICATION OF NEW CREDIT CARDS

Anytime you apply for a credit card or a loan, the lender performs an analysis known as the 'Hard Credit' inquiry which seeks to review your credit score profile. This exercise will determine your FICO credit score to a tune of 10% and the score sticks to your credit report for a period of two years.

Frequent application of new credit cards also insinuates you are a financial risk to the lender. Statistical analysis has proved that having numerous new credit cards in a short time span is a bad indicator of an individual's financial responsibility hence it causes a drop on their FICO score.

DELAYED PAYMENTS

Delayed payments are characteristic in high risk debtors due to unreliability. With your payment history accounting for 35% of your credit rating, you run the risk of having your bank sell you out to the collection agencies or notify your late payment to the credit bureaus. Both of these have a negative effect on your credit rating especially if the delay exceeds 30 days. This period will however vary from one institution to the other.

A singe late payment may soil your previously good credit rating, though this takes into consideration the severity of the delay, its frequency, and current credit score and how recent it occurred. This might be avoided where you reach out to your lender for a compromise in payment method in cases where some personal issue has arisen making your prior arrangement hard to comply with.

CO-SIGNING FOR FRIENDS AND FAMILY

Before endorsing friends and family for a loan, you may need to consider its effect on your credit rating. Co-signing for a credit with a very high balance could affect your utilization ratio, consequently causing a drop in your credit score.

As a guarantor, you take up the responsibility of ensuring full settlement of the loan by the borrower in accordance to the stated terms. A default or inconsistent loan servicing by the borrower lowers your credit score.

moFor the rich people, money is nothing. It is just like an adornment that can add a little excitement to their lives. Yes, rich people may have all the money in the world, but can money buy happiness?

For the poor and the marginalized, money may mean so much. It is the only thing that they will ever have to dream to lift their families from further poverty and at least live a decent life. But for them, it seems money is so hard to get because no matter how hard they work, their lives would never get better, unless they hit the lotto jackpot.

When someone gives even just a few bucks to the underprivileged, you can see in their faces pure happiness. This makes us think that maybe, money is the only thing that can give them pleasure. But who wouldn't? Even with just a little money, they can already buy a day's worth of meals or drinks, or even get that simple shirts or pants they longed to buy. Surely, simple happiness comes to simple people like them.

But life can be a little confusing. All that poor people want is to have money to be happy; but the rich ones would sometimes dream they are not born with a silver spoon so they can live a normal life. These kinds of people live in two contrasting worlds.

If only it would be easy for them to exchange places, they would surely be very happy. Life is sometimes not fair. When people want something, they don't get it. But those who don't want it, get it just easily.

All these boil down to the question: can money buy happiness?

It depends on who asks the question. If it's the poor ones who are already tired of being broke all their lives, yes, money can buy happiness. Because if they have the money, they can buy all the things that they never have.

They can go to places that they dream to visit. And they can live a very happy and contented life.

But for the rich ones, money can never buy happiness. Arrange marriages, which commonly happen among the wealthy, is one classic example of this.

There are many cases where a girl has been arranged to marry the son of her parents' business associate just to save their company from bankruptcy. In this case, money is the one that dictates the girl's future.

But as they say, "In every rule, there is always an exception," so it does not really follow that the poor looks up to money as the only one that can make them happy or a rich person cannot be happy with it. The only definite is that money is a very basic thing that all people need in order to survive.

So can money buy happiness? It maybe can, or it maybe not. But the only one who can answer this intriguing question is you, depending on how you see its worth in your life.

2eeManaging credit often becomes complicated when details are lost, confused, unknown or when there are disputes on personal credit reports. Many times there will be errors with purchases or credit records. Other times, you may be dealing with fraud from information being stolen and used by someone else. No matter what the error, the Credit Bureau can offer tips, information and help for credit reports that don't have the right information.

There are three major Credit Bureaus that provide reports to individuals so they know what their credit standing is. These are Equifax, Experian, and TransUnion. You can request a credit report every six months for free to make sure there are no errors and that identity fraud is not occurring; otherwise you will have to pay a small fee to access your report.

If you notice that your credit report is inaccurate, then you have the right to dispute inaccuracies. There are three ways to dispute information in your credit report, including online, by telephone or through mail. It is important to note the confirmation number of the report first sent to you. If you don't have a confirmation number it means that the credit file is compiled by an affiliate or you have purchased your credit report through a reseller. If you have an affiliate, a dispute can be made through the credit bureau which will also have your credit file. If you have gone through a reseller, you will have to get another credit report from one of the three companies listed above.

Once you have the credit report, simply review the report for inaccuracies and those entries that are not valid may be disputed. With everything that you claim is incorrect and dispute, you must give a reason why you believe the information is false. You can dispute information by mail or online. If you are disputing a credit item online, be assured security measures are always taken. These are known as Secure Socket Layers and have codes in order for you to be able to provide the proper information without it being lost or stolen online.

After making a dispute with the Credit Bureau, an investigation will begin of your credit report. Whichever bureau you go through will collect and organize information from several different resources, including records, historical information, and sources, such as your bank and information from the company the supposed false information is with. After the investigation is completed, the Credit Bureau will send you a confirmation which you can view online. This will contain the results of their investigation. The full time allotted for any of these disputes is a maximum of thirty days. It is always possible to check the status of the investigation at any time during the process. If you have disputed your credit by phone or mail, the results will be mailed to you after thirty days.

If you are not satisfied with the conclusions the Credit Bureau has made regarding your report you may make a consumer statement about the part of your credit that you are not satisfied with. This additional explanation will help your credit if the report does not clear and comes back in the future. The information will also be reviewed a second time to be sure that the investigation was accurate. Many people who have incorrect information on their report will also use credit repair companies to remove inaccurate information. It is important to look into these companies first, as many provide false information to customers and may not be able to fix the inaccurate information as claimed.

As with anything, mistakes will inevitably happen and this applies to credit reports from the three major credit bureaus as well. Additionally, fraud will occur too, however if you are the victim of fraud or a simple credit bureau mistake regarding your credit information there are methods in place that will allow you to have the information corrected.